The Dow Jones Industrial Average came within a decimal point of reaching the coveted 20,000 mark Friday, after a poor start to the trading session.
Since late November traders and analysts have been predicting the Dow to hit the 20,000 mark each week, to no avail. However, on Friday the index rose within a decimal point of the figure – with the mood on the New York Stock Exchange one of excitement turned disappointment when the index then returned into the 19980 territory.
By mid-December 2016 many analysts were predicting the final month of the year to be the one in which the Dow finally broke through the 20,000 barrier. However, by the latter stages of December the mood was becoming increasingly pessimistic – with the index slipping back into the 19800 and even 19700 regions in the final trading sessions of 2016.
However, the first trading week of the new year almost brought with it the reaching of the mark, when the index rose tantalisingly close to the figure.
Beginning the day poorly, with a dip in value, the index steadily climbed, with many analysts growing increasingly confident it would reach, if not break the mark by the ring of the closing bell. As it grew closer to the barrier the excitement gained – and at midday the index was scraping the long-awaited 20,000.
The figure slowly ebbed away from the mark however, falling back into the regions experienced earlier in the trading session.
Despite the disappointment, the opinion of Dow 20,000 happening next week is becoming one of increasing abundance, as the figure achieved on Friday’s trading session has many convinced the index has to reach the barrier during the next trading week, if not the next trading session.
Although the abundance of such a notion is widespread, there remains a number who see no reason for the Dow to reach the mark next week, and are recalling the close proximity the index reached in 2016 prior to a dip – when it came within 15 points of the mark.
The imminent inauguration of Donald Trump is promising to push the dollar down, potentially adding buoyancy to the index, however such an event is not apparent until January 20, dismissing the prospect of an inauguration-induced reduction in dollar value and consequent increase in the Dow in the coming week.
Many remain hopeful however, that the next trading week, if not next the trading session, will finally bring the index above the coveted 20,000 mark.
Chart from: https://www.ig.com
Showing the Dow Jones index come close to 20,000 mark.